Imperial Hotel's Management Issues: A Case Study Report

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INTRODUCTION TO MANAGEMENT
IMPERIAL HOTEL

Table of Contents
INTRODUCTION........................................................................................................................2
ANALYSIS OF THE PROBLEM.....................................................................................................3
CONCLUSION............................................................................................................................8
BIBLIOGRAPHY......................................................................................................................... 9
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INTRODUCTION
The report focuses on the management problems which are currently experienced by the
imperial hotel which lead to low profitability over the past years. The role of management
has been significant for an organization to keep the operations in order with the goals and
objectives of the company. The leaders and managers are responsible for the effective and
efficient management of a company. However, there are many factors which hinder the
performance of leaders and managers of the business organization. The report discussed
the Imperial Hotel, London which is known as one of the best hotel branches in London. This
building was built between the year 1905 to 1911 which was replaced and demolished by a
new building of the same name in the year 1966. At present, the Imperial Hotel of London is
facing numerous problems regarding management and leadership.
Due to inefficient management, various problems arise in the hotel which subsequently
reduced the profitability and creditability of the hotel. Employee turnover rate is increased
due to low staff morale. The star grade of the Imperial Hotel is declined in the hotel industry
due to its low performance. The hotel room of the Imperial Hotel is relatively very low as
compared to the other hotels of the same industry. This is the result of the poor
performance of the managers and leaders of the hotel. In order to deal with different
problems facing by the Imperial Hotel, the report suggests improvement measures that can
help the hotel in improving its performances in the future.
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ANALYSIS OF THE PROBLEM
EXECUTIVE SUMMARY
Imperial Hotel is the London hotel which has many hotel branches which have been in
operation for more than 100 years. The Imperial Hotel is situated in the West End of London
which fulfills every need of national and international guests of the hotel. There are many
facilities provided by the Imperial Hotel which include well-furnished rooms with hygiene
and comfort, conference rooms, swimming pool, bars, and restaurants, etc. There are other
hotels in the network of the branches of Imperial Hotel such as President, Bedford,
Tavistock, Royal National, Morton, and County.
DIFFERENT THEORIES OF MANAGEMENT
The management is both an art and science of making people or other human resources of
the company work for the company. Various activities such as directing, controlling,
organizing, and planning are included in the theory of management. It is a mixture of six Ms
which include men, machine, material, methods, money, and market. Different activities are
undertaken for achieving the goals and objectives of the company (Business Dictionary,
2019). The person or individuals who manage the operations of the company are known as
managers or leaders. There are many functions which are undertaken by the management
of the business such as accounting, human resource, finance, marketing, sales, information
technology, and consultancy (Wilkinson, 2013). Following are some of the theories of
management which can be used by different managers and leaders:
Contingency Theory
The contingency theory of management allows the leaders and managers to take decisions
according to changing situations and behaviors of the employees. This theory believes that
there is no best way to control, direct or organize the company. There are various internal
and external factors of the company which affects the decision-making process of the
leaders and managers. The contingent theory gives the freedom to the managers to apply
their own style of management for conduction the operations of the business and to take
appropriate decisions accordingly. The relationship between favorable or non-favorable
situational change and the leadership style of managers (Hawthorne, 2018).
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Administrative theory
The administrative theory of management was developed by Henry Fayol which help in
improving the performances of the managers. There is a sum of 14 principles of
management which are developed by Fayol which describes the leadership principles which
can help in organizing the human resources of the company. The six paramount functions of
the administrative theory given by Henry Fayol are forecast, plan, organize, command,
coordinate and control. The different principles of management suggested by Fayol help in
improving productivity by promoting employee initiative and framework.
Bureaucratic Management Theory
Bureaucratic Management Theory was developed by Max Weber who was a German
sociologist. The Bureaucratic Management Theory lays emphasis on the formal system of
the organization. A bureaucratic system is set up in this theory in the company along with a
hierarchical chain of command which help the managers in developing a strict control
system in the company. This system improves the performance of the employees by
establishing a different reward system for better performance at the year-end.
Documentation and record keeping is another important aspect of the Bureaucratic
Management Theory. Accountability and responsibilities fixed on each employee and
workers of the company help in ensuring standard and quality results (Fernandes, 2018).
Behavioral Theory of Management
The Behavioral Theory of Management was developed by Elton Mayo's experience which
resulted in the increase of worker productivity. It was created because of the need of
responding and handling employee behavior and providing motivation. This management
style makes a shift of management from the production focused leadership style to human
resource focused management approach. The motivational level in the Behavioral Theory of
Management decides the productivity of the workforce. The theory believes that the
employees are more likely to feel motivated and improve their productivity when are
satisfied with their job and working conditions of the company (Quain, 2019).
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REASONS AND CAUSES OF THE PROBLEM 5 OF IMPERIAL HOTEL OF LONDON
The Imperial Hotel is facing the problem of the back of house staff such as housekeeping,
kitchen, and maintenance. Following are the reasons behind the improper performance of
the house staff of the Imperial hotel:
 There are 400-500 rooms which are supervised by only 12 supervisory and
administration staff.
 High employee turnover rate in the housekeeping department which was estimated
at the rate of 60 percent in the current year.
 The in-house staff is inefficient than the Spanish staff of the hotel which generally
score 60 to 65 percent than 75 percent.
 The reasons for guest complaints are unhygienic conditions of bedrooms and
bathrooms of the hotel.
 Another reason for dissatisfaction among the guests is the inappropriate and rude
behavior of the hotel staff.
 The motivation levels of the full-time staff are very low which lead to employee's
turnover in the year.
MANAGEMENT THEORIES TO FIX THE PROBLEM OF BACK OF HOUSE STAFF
Peter Farnsworth can use one or more of the above-mentioned management theories for
improving the health of operations of the Imperial Hotel. In order to implement changes in
the operational management of the hotel, Peter Farnsworth can use Kurt Lewin's change
model. This is a three-step model which laid the foundation of change in the management
and operations of a company. The description of Kurt Lewin's three-step change model is
given below which can be used by Peter Farnsworth:
UNFREEZE
This is the stage at which the need and requirement for change are brought to the
employees with a motive of easily and successfully introducing such a change in the
company (Morrison, 2014). Peter Farnsworth should communicate the advantages and need
for changes in the working system and operations of the hotel. Peter Farnsworth should
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encourage and inspire his team to adopt these changes so that the results of such changes
can be implemented in the hotel.
CHANGE
In the change stage, the change or modifications are actually introduced in the company
with the help of the introduction of various resources and materials (Connelly, 2016). Peter
Farnsworth can bring changes in the directions and supervision of housekeeping
department and can make each employee responsible for his work. Further, reward systems
and promotions should also be introduced so that the employees can be motivated to work
better for the success and growth of the hotel.
FREEZING
In the freezing stage, the changes and modifications made in the management and
operations of the company are normalized in the company. It is a process of switching back
to the original state. This process is also known as a refreezing stage where the changes are
accepted by the employees and it became the new norm in the company. Peter Farnsworth
should help the employees in accepting the change and making a new relationship in the
hotel. It helps in building stability in the changes of the hotel management.
SUMMARY AND RECOMMENDATIONS
Peter Farnsworth should one or more of the management theories for bringing changes in
the hotel. Contingency theory of management can be used by Peter Farnsworth for ensuring
management according to the changing situation in the housekeeping department.
Currently, the hotel is facing a problem of high employee turnover which is due to low
motivation level. Peter Farnsworth should introduce the award system and recognition
programs at the end of each year which will inspire the employees to work better and
improve their performance. High-quality performance level should be encouraged by
promotions and hike in salary which will keep the employees satisfied with their job. The in
house employees need to be motivated more than the Spanish employees of the hotel to
improve their working score. The hotel is using the Texlon system where the standards are
compared with the actual performances of the employees at the year end and ranks are
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given accordingly. This system is appropriate to keep a record of workings of the employees
and check their personal performances.
The use of ABC Recruitment Company of Spain for recruiting employees of the hotel not
only increased the cost of the hotel but also there is a risk of the reliability of the selected
employees. The selection criteria on the basis of English knowledge is also not sufficient for
selecting employees. Peter Farnsworth can replace such system with in house recruiting
system of the employees. Bureaucratic management theory of Max Weber can be applied
in the hotel by Peter Farnsworth which will specify the recruitment and selection process so
that cost can be reduced and more reliable and efficient workforce can be selected for the
hotel.
The administrative theory is also important for the management of the hotel which will help
in the proper administration of 400 to 500 rooms of the hotel. Supervisors should be asked
to adopt this theory which will help them to manage their team and workforce for proper
planning and development of the hotel. Kurt Lewin's three-step change model can be
adopted for successfully introducing changes in the hotel. The housekeeping department
should be made responsible for room cleaning, bathroom cleaning, bed making, pest
control, laundry services, and interior decoration.
Thus Peter Farnsworth can take above measures for increasing the performances of the
employees and keeping the guest satisfied and happy.
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CONCLUSION
The Imperial Hotel is a well-known hotel branch of London which is losing its credibility due
to poor management and leadership flaws in the operations of the hotel. The main reason
for the back of house staff is low motivation level, poor management and inappropriate
system of housekeeping department of the hotel. The low motivation level among the
employee leads to high employee turnover of the hotel. This problem can be resolved with
the help of proper reward systems and promotional methods. The reward systems will
motivate the employees to work better and improve their performances. There is another
problem faced by the hotel which is a guest complaint about the rude and inappropriate
behavior of the staff and worker of the hotel. This may be due to their dissatisfaction for the
job which leads to their poor performance as well. This problem can also be resolved by
Peter Farnsworth with the help of motivational measures and reward systems. The
housekeeping department of Imperial Hotel is managed by the executive housekeeper and
12 supervisory and administrative staff which include 400 to 500 rooms of the hotel. The
supervisors should align his leadership with the organization's value in order to create a
proper climate for inspiring the employees by following ethical principles.
Peter Farnsworth can use a blend of management theories for creating a strong leadership
and management approach in the hotel for improving the current position so that
profitability and creditability can be increased.
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BIBLIOGRAPHY
Business Dictionary, 2019. Management. (Online) Available at:
http://www.businessdictionary.com/definition/management.html (Accessed on 29th March,
2019).
Connelly, M., 2016. The Kurt Lewin Change Management Model. (Online) Available at:
https://www.change-management-coach.com/kurt_lewin.html (Accessed on 29th March,
2019).
Fernandes, P., 2018. Management Theories Every Small Business Owner Should Know.
(Online) Available at: https://www.businessnewsdaily.com/10626-management-theories-
for-smbs.html (Accessed on 29th March, 2019).
Hawthorne, M., 2018. Management Theories & Concepts in the Workplace. (Online)
Available at: https://smallbusiness.chron.com/management-theories-concepts-workplace-
17693.html (Accessed on 29th March, 2019).
Morrison, M., 2014. Kurt Lewin change theory three-step model – unfreeze, change, and
freeze. (Online) Available at: https://rapidbi.com/kurt-lewin-three-step-change-theory/
(Accessed on 29th March, 2019).
Quain, S., 2019. Behavioral Organizational Theories. (Online) Available at:
https://smallbusiness.chron.com/behavioral-organizational-theories-4963.html (Accessed
on 29th March, 2019).
Wilkinson, J., 2013. Management Definition. (Online) Available at:
https://strategiccfo.com/management-definition/ (Accessed on 29th March, 2019).
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